What is Kurtosis, and the measure of Kurtosis?

Learning Objective:

• What does Kurtosis relate to?

• How to measure Kurtosis?

Concept:

• Kurtosis relates to bulginess, peakedness, tailedness of a frequency distribution.

• Leptokurtic frequency distribution is narrow with sharp peak and extended tails.

• Mesokurtic frequency distribution is normal with less sharp peak and not much extended tails.

• Platykurtic frequency distribution is like platypus without sharp peak and very less extended tails.

• Kurtosis is measured with Pearsonian's Coefficient of Kurtosis which is based on central moments.

• If γ₂ > 0, the frequency distribution is Leptokutic.

• If γ₂ = 0, the frequency distribution is Mesokurtic.

• If γ₂ < 0, the frequency distribution is Platukurtic.

Formulas:

• Pearsonian's Coefficient of Kurtosis

1. β₂ = μ₄ / μ₂²

2. γ₂ = (β₂ - 3)

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